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Large Employers Are Switching to Defined Contribution Health Plans

Written by: PeopleKeep Team
January 27, 2011 at 9:15 AM

Note: This should not be taken as tax or legal advice

general motors defined contribution healthMany large employers are terminating traditional defined benefit retiree plans in favor of a defined contribution approach utilizing the individual market and Medicare.  

This approach relies on health reimbursement arrangements (HRAs), which retirees can use to pay for health care expenses and Medicare Part B and Part D premiums

The following companies (among others) have already decided to make the switch:
    • General Motors (GM)
    • Ford
    • Caterpillar
    • 3M
 
defined-contribution-health-benefits

Topics: Defined Contribution Health Plans

Additional Resources

Trying to decide which HRA is best for you? Take our quiz to find out.
Get our guide on how to offer health benefits with a small budget.

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